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There is good news for employers in the hospitality space coming out of the Ninth Circuit. The court in Marsh v. J. Alexander’s, LLC recently ruled that tipped employees who also perform non-tip-generating work cannot state a claim for violation of the tip credit provision of the Fair Labor Standards Act. As otherwise stated, employees, such as servers and bartenders, who occasionally handle “discrete related tasks” over the course of any given shift that are intermingled with duties directed at earning tips remain subject to tip credits (at least in those states that allow tip credits – California is not one of them). (Read More)

The Labor Code in California appears to be pretty clear where it states that employees cannot work more than six consecutive days without a day of rest. But as is so common in the law, even this seemingly straightforward rule is subject to interpretation. And that’s exactly what the Ninth Circuit has done – with the help of some guidance from the California Supreme Court – in Mendoza v. Nordstrom Inc. (Read More)